Under Ontario's Real Estate and Business Brokers Act, what happens if an agent fails to disclose a material fact about a property that they knew or should have known?

Option B: Only the brokerage is responsible, not the individual agent

This is incorrect because REBBA establishes individual agent responsibility alongside brokerage liability. While brokerages have vicarious liability for their agents' actions, individual agents remain personally accountable for their professional conduct. RECO can discipline individual agents directly, and courts can hold agents personally liable for damages resulting from their failure to disclose material facts. The legislation specifically targets both the brokerage and individual registrants.

Option C: The transaction is automatically void

Automatic voidance is not the prescribed remedy under REBBA. While non-disclosure of material facts may provide grounds for rescission, this requires court action or mutual agreement between parties. The transaction remains valid until formally voided through legal proceedings. REBBA focuses on regulatory discipline and civil remedies rather than automatic contract nullification, allowing flexibility in addressing different severities of non-disclosure.

Option D: The agent must reduce their commission by 50%

REBBA contains no provision requiring automatic commission reduction for material fact non-disclosure. Commission adjustments are not a regulatory remedy under the Act. RECO's disciplinary powers include fines, education requirements, license suspension, and revocation, but not mandated commission reductions. Civil courts might order restitution or damages, but this would be case-specific, not a standardized 50% reduction.